 "U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul")
Foreign portfolio investors (FPIs) have exhausted their limits in central government bonds after bidding for Rs 332 crore of unutilised limits they can buy in such papers. Bids worth Rs 521 crore were accepted against the limit, with weighted average of successful bids being at 38.39 basis points.
The Reserve Bank of India (RBI) on October 6 had said foreign investors’ debt limits would be denominated in rupees instead of dollars as foreigners would eventually hold five per cent of the outstanding government stock in phases by March 2018.
The conversion had opened up additional space for the foreign investors to buy in Indian government bonds.
Effective October 12, RBI had revised the limit to Rs 1,29,900 crore from Rs 1,24,400 crore earlier. Effective January 1, the limit will be enhanced to Rs 1,35,400 crore.
